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Carnival (CCL) Suspends Additional Cruises Through Early 2021

Zacks Equity Research
·3 min read

Carnival Corporation & Plc CCL recently extended the suspension of additional cruises for the first part of 2021. Following the news, the company’s shares have declined 2.3% on Nov 18. Notably, the company’s shares have tanked 65.4% year to date, compared with the industry’s decline of 33.7%.

The company has cancelled all embarkations from the United States home ports through Jan 31, 2021. Moreover, Baltimore, Charleston, Jacksonville, Long Beach, Mobile, New Orleans and San Diego embarkations have been cancelled through Feb 28 and embarkations on Carnival Legend out of Tampa through March 26.

The company will gradually resume guest operations in phased manner. The company will initially focus on Miami and Port Canaveral to resume operations followed by Galveston. Management stated that 16 Carnival cruises, including Conquest, Dream, Ecstasy, Elation, Freedom, Glory, Liberty, Miracle, Panorama, Pride, Sensation, Sunrise, Sunshine and Vista are currently following the CDC process for recommencement of guest service in the United States in 2021.

Christine Duffy, president of Carnival Cruise Line said “We are committed to meeting the CDC requirements and keeping our guests and business partners informed of our progress.”

Bookings Hurt By Pandemic

Bookings for 2020 have been significantly impacted by the coronavirus pandemic. The company stated that cumulative advanced bookings for second half of 2021 capacity currently available for sale are at the higher end of the historical range. However, pricing on these bookings are down by mid-single digits compared with the second half of 2019 on a comparable basis. This reflects the effect of future cruise credits from previously-cancelled cruises being applied.

Carnival — which shares space with Norwegian Cruise Line Holdings Ltd. NCLH and Royal Caribbean Cruises Ltd. RCL — has a Zacks Rank #4 (Sell) at present.

A Key Pick

A better-ranked stock worth considering in the same space is Pool Corporation POOL, which carries a Zacks Rank #2 (Buy). Shares of the companhy have gained 39.7% in the past six months.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Carnival Corporation (CCL) : Free Stock Analysis Report
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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
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